GENESIS RESOURCES LIMITED — Capital/Financing Update 2010

Mar 29, 2010

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ASX/MEDIA Release

30[th] March 2010

GENESIS ALICE SPRINGS PROJECT RECOVERS NEW ROCK CHIP RESULTS INDICATING POTENTIAL FOR HIGH IRON MINERALISATION

Manganese and Iron focused, Genesis Resources Limited (ASX: GES) is pleased to announce to the market the encouraging results of the recent rock chip reconnaissance over the Magnetite and Triple Iron Hill prospects within the 100 per cent Genesis owned Alice Springs Project Genesis had commissioned its geologists to examine the Magnetite and Triple Iron Hill Prospect, within the tenement (EL 24817), with a view to evaluate the outcropping iron mineralisation. Thirty rock chip samples were taken over both iron prospects. The samples have indicated excellent first pass results over these two prospects. Based on these results, Genesis Resources has commissioned GPX Surveys Pty Ltd to conduct a detailed aerial electromagnetic and magnetic survey in April-May 2010.

Key points from the Reconnaissance Sampling include:

• Iron mineralisation over Magnetite Hill appears to be mainly structurally controlled, within a fold sequence, with iron assays ranging from 37.49% to 63.72% Fe in outcrop (dominated by magnetite mineralisation)

• Triple Iron Hill mineralisation ranges from 27.21% to 70.29% Fe in outcrop (also dominated by magnetite mineralisation)

• These results justify further follow-up to determine the potential extent of the mineralisation sampled to date

• Aerial electromagnetic and magnetic surveys will be carried out over the iron prospects, commencing in April-May 2010, these two prospects represent priority targets.

The rock chip samples were collected in March 2010, as part of the first pass reconnaissance sampling over the Magnetite and Triple Iron Hill areas, within the Alice Springs Project. Assay results of each sample taken in the reconnaissance assessment are set out below.

The Magnetite Hill prospect occurs as a robust outcrop of magnetite iron, forming a “U” shaped outcrop, resulting in a prominent hill and appearing as part of a folded sequence. The Prospect encompasses a total outcropping strike length of approximately 300 metres and up to 30 metres in width. Iron grades vary from 37.49 per cent to 63.72 per cent Fe, within banded magnetite-cherty outcrops. The surrounding country rock is dominated by quartz-muscovite schist with minor magnetite bands which assayed 14.97 per cent Fe (Sample MTH 001, Table 1).

Table 1: Magnetite Hill Prospect Rock Chip Assay Results

							LOI 1000
			Fe2O3	Fe	P2O5	SiO2		Al2O3	BaO	CaO	K2O	MgO
Sample	Northing	Easting
Number			%	%	%	%	%	%	%	%	%	%
MTH 001	7432873	468387	21.4	14.97	0.618	43	-0.2	13.45	0.035	10.4	0.203	6.65
MTH 002	7432892	468389	3.12	2.18	0.062	73.3	0.36	12.45	0.139	0.3	7.92	0.66
MTH 003	7432914	468392	66.3	46.37	0.031	30.7	0.82	1.34	0.003	0.03	0.01	0.07
MTH 004	7432941	468390	72.1	50.43	0.037	25.3	0.74	0.87	< 0.001	0.13	0.005	0.11
MTH 005	7432970	468375	87.1	60.92	0.02	9.82	1.64	0.67	< 0.001	0.01	0.004	0.06
MTH 006	7432993	468366	75.8	53.02	0.065	21.9	0.92	0.7	< 0.001	0.01	< 0.001	0.04
MTH007	7432993	468341	87.7	**61.34 **	0.047	9.61	1.05	0.72	0.007	0.02	< 0.001	0.08

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							LOI 1000
			Fe2O3	Fe	P2O5	SiO2		Al2O3	BaO	CaO	K2O	MgO
Sample	Northing	Easting
Number			%	%	%	%	%	%	%	%	%	%
MTH 008	7432975	468322	91.1	63.72	0.029	6.03	1.54	0.63	0.001	0.01	< 0.001	0.05
MTH 009	7432966	468313	75.9	53.09	0.045	21.6	0.82	0.82	< 0.001	< 0.01	< 0.001	0.07
MTH 010	7432980	468303	53.6	37.49	0.079	42.4	1.7	1.48	< 0.001	0.02	< 0.001	0.04
MTH 011	7432893	468352	65.5	45.81	0.025	32.5	0.7	0.64	< 0.001	0.02	< 0.001	0.04
MTH 012	7432919	468315	54.6	38.19	0.044	44.1	0.12	0.47	< 0.001	0.01	< 0.001	0.04
MTH 013	7432905	468298	74.7	52.25	0.022	26.4	-0.69	0.64	0.003	0.02	0.004	0.07
MTH 014	7432905	468298	88.6	61.97	0.034	8.19	1.72	0.68	< 0.001	0.01	< 0.001	0.02
MTH 015	7432930	468310	75.1	52.53	0.065	21.3	1.73	0.94	0.002	0.02	0.001	0.07

Photograph 1: Aerial Photo of Magnetite Hill showing the outcropping magnetite ridges

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The Triple Iron Hill Prospect is located approximately 3.9 kilometres to the northwest of Magnetite Hill. The Prospect occurs on a rounded low rise hill and is characterised by three prominent outcrops of magnetite rich iron formation, which protrude above the surrounding country rocks.

Individually, the outcrops are approximately 30 metres in strike extent, up to 20 metres in width and protrude above the ground surface by up to 10 metres, although the rounded hill itself is up to 30 metres above the surrounding country rock. (Table 2, Photograph 2). Along strike the iron formation disappears under cover. The outcropping iron formation protrudes above the surrounding country rock, a quartz mica

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gneissic schist, by up to 30 metres. At this stage the relationship of the three ironstone outcrops to each other is not clear and will require further geological and geophysical interpretation to determine their association.

Table 2: Triple Iron Hill Prospect Rock Chip Assay Results

							LOI 1000
			Fe2O3	Fe	P2O5	SiO2		Al2O3	BaO	CaO	K2O	MgO
Sample	Northing	Easting
Number			%	%	%	%	%	%	%	%	%	%
TIH 001	7435835	465648	38.9	27.21	0.172	47.6	1.29	5.5	0.045	0.02	2.29	1.27
TIH 002	7435839	465644	38.4	26.86	0.196	46.9	1.29	6.79	0.062	0.02	2.76	1.02
TIH 003	7435842	465649	40.6	28.40	0.188	47.2	1.04	5.01	0.054	0.01	2.03	1
TIH 004	7435843	465652	40.9	28.61	0.206	45.9	1.11	5.33	0.064	0.01	2.27	1.3
TIH 005	7435848	465651	40.6	28.40	0.092	46.5	0.82	5.86	0.065	0.02	2.44	0.95
TIH 006	7435900	465649	60.9	42.60	0.028	38	0.13	0.37	< 0.001	< 0.01	0.065	0.04
TIH 007	7435902	465644	51.8	36.23	0.042	49.2	-0.69	0.25	< 0.001	0.01	0.016	0.02
TIH 008	7435903	465637	47.2	33.01	0.102	51.8	0.2	0.34	< 0.001	0.01	< 0.001	0.01
TIH 009	7435908	465659	40.4	28.26	0.03	60.4	-0.39	0.23	< 0.001	0.01	< 0.001	< 0.01
TIH 010	7435910	465649	86.6	60.57	0.328	14.85	-1.18	0.35	0.005	0.27	0.006	0.03
TIH 011	7435890	465730	66.9	46.79	0.083	34	-0.1	0.77	0.007	0.01	0.042	0.02
TIH 012	7435883	465736	98.6	68.97	0.103	3.58	-0.39	0.53	< 0.001	0.01	< 0.001	0.01
TIH 013	7435886	465733	98.5	68.90	0.17	3.58	-1.67	0.51	0.01	0.01	< 0.001	0.03
TIH 014	7435887	465735	98	68.55	0.045	4.22	-1.37	0.47	0.006	0.01	< 0.001	0.03
TIH 015	7435890	465735	100.5	70.29	0.073	1.7	-0.59	0.49	0.006	< 0.01	< 0.001	0.03

Photograph 2: Massive iron mineralisation over Triple Iron Hill

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Photograph 3: Outcrop of one extension of massive magnetite within the Triple Hill Iron Prospect

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Photograph 4: Banded layers of rich magnetite within outcrop

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In commenting on these highly encouraging results, Pedro Kastellorizos, Managing Director, Genesis Resources Ltd said:

“We are delighted to have received such excellent first pass results for the Magnetite and Triple Iron Hill Prospects, within the Alice Springs Project. Based on the significance of the results, we have commissioned GPX Surveys Pty Ltd to fly an aerial survey in the coming weeks.”

“As part of the initial helicopter reconnaissance, Genesis also identified other iron bearing areas within the Project, which will be followed up during the month of April 2010, all signalling that an exciting period of development is ahead for Genesis.”

“These type of results are highly prospective and indicate the potential for a high grade iron mineralisation deposit. Accordingly, Genesis plans to accelerate progress to enable a follow up ground reconnaissance and geophysical surveys in order to progress to the next stage of the development process.”

For further information, please contact:

Pedro Kastellorizos Rod North – Managing Director Managing Director Bourse Communications Pty Ltd Genesis Resources Ltd Tel: +3 9510 8309 Tel: + 8 8981 8106 Mobile: 0408 670 706 info@genesisresourcesltd.com.au Email: rod@boursecommunications.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by John Davis who is a member of the Australasian Institute of Mining and Metallurgy. Mr Davis is a contractor of Genesis Resources Ltd and has sufficient experience relevant to the styles of mineralisation under consideration and to the subject matter of the report to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC code). Mr Russell consents to the inclusion in the report of the matters based on his information in the form and context in which they occur.

About Genesis Resources Limited

Genesis Resources Limited is an Australian company with a portfolio of quality iron, manganese, gold, uranium and base metal (copper-zinc-silver) in the highly prospective Archaean and Proterozoic metallogenic provinces of Australia. Genesis has signed a Joint Venture over an advanced copper-gold (Plavica) project within the Former Yugoslav Republic of Macedonia. The Plavica Project lies within Carpathian Volcanic Arc, a major epithermal province running through Eastern Europe, which is highly prospective for gold, copper and silver mineralisation.

Genesis projects are close to established infrastructure including railways, shipping ports, highways, power stations and populated areas. The Company’s objective is to provide rapid capital growth through mineral discoveries and development of economic deposits in Australia and overseas.

For more information please visit the Company website at: www.genesisresourcesltd.com.au

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